For Dewey Associates, the Beginning of the (Very) End?

Some associate attorneys at the struggling New York law firm Dewey & LeBoeuf are being told that their employment will end next week, according to a lawyer at the firm.

The firm has suffered a raft of departures this year, losing more than one-third of its partners amid disputes over compensation and heavy debt load.

At a Tuesday afternoon meeting in a multi-purpose room at the firm, one group of associates were told that next Tuesday would be their last day, according to a Dewey lawyer in attendance. More meetings with groups of associates were set for later in the afternoon, according to the lawyer.

On Monday, secretaries were told that Friday would be their last day.

For many associates, Tuesday’s meeting was the first real communication regarding their fate even as scores of partners have left and basic law firm functions were cut off, including mailroom services and cars to ferry attorneys home after late nights at the office.

“We are pretty happy to have some closure instead of this drip torture,” one associate said.

A syndicate of banks which lent Dewey $75 million is in continued talks with the firm and has largely gained control over the firm’s expenditures, according to a person familiar with the matter. The firm and the banks have until May 15 to work out a deal, according to the person.

A spokesman for Dewey & LeBoeuf did not immediately respond to a request seeking comment.

About Law Blog

The Law Blog covers the legal arena’s hot cases, emerging trends and big personalities. It’s brought to you by lead writer Jacob Gershman with contributions from across The Wall Street Journal’s staff. Jacob comes here after more than half a decade covering the bare-knuckle politics of New York State. His inside-the-room reporting left him steeped in legal and regulatory issues that continue to grab headlines.

A federal judge in Manhattan rejected a bid by the conservative advocacy group Citizens United to stop New York Attorney General Eric Schneiderman from requiring that charities disclose to him their major donors.

Concerns about a gender gap in the legal profession tend to focus on issues like pay, billing rates and who makes partner. A new study by the American Bar Association looks inside the federal courtroom to see who's trying cases.